US hits Canadian softwood lumber with 17.9 % import duty

By Barry Ellsworth

TRENTON, Canada (AA) - The US has slapped a final duty on imported Canadian softwood lumber at an average of 17.9 %, Canada's trade minister said Wednesday in a statement.

Mary Ng said she is, "extremely disappointed that the United States has decided to increase the unfair duties it is imposing on Canadian softwood lumber from most producers to 17.9%. Canada calls on the United States to cease imposing these unwarranted duties on Canadian softwood lumber products."

The old rate was 8.99 %.

The acrimonious dispute dates to the 1980s, with the US insisting that Canada unfairly subsidizes its lumber industry, putting American firms at a disadvantage.

But the softwood lumber industry is of vital economic importance to Canada, employing 185,000 workers in 2020 and it contributed CAN$25 billion (US$19.5 billion) to the GDP last year.

“The Government of Canada will continue to vigorously defend our softwood lumber industry and the workers and communities it supports, including through litigation under CUSMA’s (Canada-U.S.-Mexico free trade agreement) Chapter 10, as well as NAFTA’s (North American Free Trade Agreement) Chapter 19 and at the WTO (World Trade Organization)," said Ng. "At every step of the way, rulings have found Canada to be a fair trading partner.

“Canada has always been willing to explore ideas that allow for a return to predictable cross-border trade in softwood lumber and remains confident that a negotiated solution to this long-standing trade issue is in the best interest of workers in both our countries.”